Shares of Hims & Hers Health (NYSE:HIMS) fell around 30% on Monday after Novo Nordisk (NYSE:NVO) terminated its collaboration with the telehealth company, citing violations related to compounding and marketing of the weight-loss drug Wegovy.
Novo said it ended Hims & Hers’ access to the FDA-approved treatment through its NovoCare platform, alleging that the company engaged in illegal mass compounding and deceptive marketing.
The drugmaker raised concerns about compounded versions of semaglutide, the active ingredient in Wegovy, often sourced from Chinese suppliers lacking oversight by the US Food and Drug Administration.
The move follows the resolution of a nationwide shortage of Wegovy, with Novo stating it is now focusing on ensuring only safe, FDA-approved treatments reach patients.
Hims & Hers had offered access to compounded versions of semaglutide on its platform. The company has not issued a public response to the termination.